• Ripple CEO Brad Garlinghouse took to Twitter on March 12 to discuss the company’s exposure to Silicon Valley Bank and reassure his followers of Ripple’s stability.
• His short tweet thread was intended to reassure users that the SVB situation would not disrupt daily operations.
• The Federal Reserve announced it had established a funding program of $25 billion to assist banks with liquidity during times of financial stress.
Ripple Reassures Financial Position
Ripple CEO Brad Garlinghouse took to Twitter on March 12th to discuss the company’s exposure to Silicon Valley Bank (SVB) and reassure his followers of Ripple’s stability. In a short tweet thread, he stated that there would be “NO disruption to our day-to-day business” as they held a majority of their USD with a broader network of bank partners. He also remarked that Ripple remains in a strong financial position, despite any potential losses from SVB.
Federal Reserve Establishes Funding Program
The Federal Reserve subsequently announced it had established a funding program worth $25 billion which is intended for assisting banks with liquidity during times of financial stress. All depositors at Silicon Valley Bank will have access to all their money starting Monday, March 13th and no losses associated with resolution will be borne by taxpayers according to the Federal Reserve statement.
Positive Response from Community
Many Twitter users responded positively to Garlinghouse’s reassuring statements, with one user noting “I never doubted you or @Ripple… Thank you for the statement.” Prior this reassurance, Ripple chief technology officer David Schwartz had promised a statement regarding its exposure would be released shortly.
Impact on Financial Services Industry
The events surrounding Ripple’s relationship with Silicon Valley Bank has sparked discussion within the crypto community regarding risk management in banking partnerships and how it could impact other financial services firms in similar situations going forward. This incident also serves as an example of how cryptocurrency companies can withstand such events through careful planning and contingency efforts should something happen in the future.
Ultimately, this incident serves as an example for other crypto companies around risk management when dealing with banking partners; emphasizing that proper precautions need to be taken in order for them remain solvent even when faced with unexpected issues such as banking collapses or other financial difficulties.